In the U.S., state laws determine how often employers should pay employees. It varies by state. (Of course, it does.) The only states without a pay frequency law are Alabama and Florida.

Each state law has the minimum frequency for paying employees. Employers can choose to pay more often than the requirement.

Each time an employee receives a paycheck, they are reminded why they are working. To pay their bills and to hopefully save some money for the future and emergencies.

Paychecks are the glue that keeps us showing up each day at work. They remind us every week or every other week why we are working. They are a retention tool.

But the reality is that most of us want more than a paycheck, we want the connections with colleagues, customers, and others to be a reward as well.

The quality of our relationships AND our paycheck are what keeps us performing our jobs year after year.

I spend most of my time helping employers get the amount of paychecks right. Employees provide their effort, time, and results. Employers give them base pay, bonus, or sales commissions. Benchmarking to competitive market data is essential to getting the paycheck amount right.

How you communicate about pay and the decision-making process or your pay transparency outcomes are also a component of your employer and employee relationship.

So, as you are revising the pay grade structures for the next year and assessing employee performance, don’t forget about relationships and the quality of the connections at work.

To have a high performing team and to achieve amazing business results requires a healthy workplace culture and competitive pay that is aligned to the business strategy.

Relationships + Paychecks = Glue (aka Retention)

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